| Kasz216 said: Except... they were enforcing Glass Steagall... most people just don't know what Glass Steagal was. As for removing the cancel option... that would just be a disaster. The facebook IPO is a good example of what would happen if you did that. As for a transaction tax right away... then your just punishing regular traders very hard. Something like 40-60% of American households own stock at any time... and most "ametuer" investors tend to play the short term game. Your average stock is only held 7 months. Which sounds like a long time, until you take into account the numerous pension funds, fixed income funds and the like that tend to buy stocks of juggernauts and just lets them sit for a decade or so. The tax, and getting rid of the cancel button would harm those with less money disproportionatly and also cause them to hesitate more and miss out more. While the 1 minute waiting time? Won't effect them at all... except by leveing the playing field. As for Dividends. Dividends have their own tax... which is either taxed at Income tax or Capital gains depending on the dividend. It will be going back to purely income tax rate in 2013. |
What happened after Glass-Steagall was repealed was that mortgages flowed into Wall Street and became investment instruments that drove up the price of mortgages, and had individuals overleverage on them, assuming they would always go up. Throw in Fed cheap money, and Washington cheerleading home ownership and it produced a speculative bubble in homes. the repeal of Glass-Steagall contributed to this. Here is one article.
http://www.electionnews2008.com/glass-steagall-repeal-caused-subprime-disaster.htm
And even Newt said that the not separating the different banks from each other is a bad idea:
